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Forum Moderators: LifeinAsia
joined:Apr 13, 2002
I contract myself out. I'm not anyone's employee. Ever.
On the few occasions I needed help I hired other contractors and left the payments to the firm, not me. Less headaches for me.
I'd have no problem paying the contractors. That is my intention. They would be working for me at the customer site which is my current employer. I look at it this way, my company is going to go out and search for consultants(through placement firms) to fill the open positions anyway so why not hire them through me. I'd be the middleman instead of the placement firms. My concern is if their are any legal conflicts in doing this?
That said, I have a friend who does what you want to do (also in IT) and he seems to have no trouble with it. His company knows he is doing it and it's all very out in the open. Have you asked your employer if they have any problem with it?
No I haven't discussed it with them yet. Aside from the legal aspect, it's good to hear your friend does it without a problem. I wanted to know if others had done this sort of thing before discussing with my employer. I have no problem discussing it with them. Just want to make sure it's even a possibility.
If your "small consulting business on the side" is actually incorporated, you should have no worries at all. If it's been just you working as a sole proprietor, the more you could establish that it's an ongoing business with other clients the easier it would be for you to legitimatize this in the unlikely event that you get scrutinized. You want to be sure that it wouldn't appear to the IRS as if your intent is to avoid tax witholding, or anything similarly dodgy, by redirecting some of what should be wages into other forms of payments.